Written Commentary
CRUDE OIL
While crude oil prices this morning remain near yesterday’s high, a-number-of bearish developments overnight should leave pressure on prices through another trading session. While yesterday’s EIA crude stocks decline was initially supportive, the energy trade eventually settled on the sharper than expected jump in gasoline stocks as a sign that increased fuel supply is already flowing ahead of the seasonal increase in demand.
US gasoline inventories this week posted an even wider annual deficit than the prior week, but that impact was offset by the larger than expected weekly inflow to inventories.
NATURAL GAS
The difficulty in predicting lower natural gas prices is the fact that prices are already historically cheap. However, supply weighs heavy on sentiment and demand appears to be anemic. Expectations for this week’s injection report pegged a top end inflow around 25 BCF but in the event of a larger than expected inflow, prices could fall to new lows for 2021.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
